TAXABLE SITUS
Section Section
21.01. RealProperty. 21.08. IntangiblesofCertainFinancialInstitutions. 21.02. TangiblePersonalPropertyGenerally. 21.09. AllocationApplication.
21.021. VesselsandOtherWatercraft. 21.10. LateApplicationforAllocation. 21.03.
21.031. 21.04. 21.05.
InterstateAllocation.
Allocation of Taxable Value of Vessels WatercraftUsedOutsideThisState. RailroadRollingStock.
CommercialAircraft.
and Other 21.1121.21.to21.20.Definition[Reserved].[Repealed].
21.22. RecordofMovement[Repealed]. 21.23. RecordofMovement[Repealed].
21.055. BusinessAircraft. 21.24. Penalty for Failure to Record or Report Movement 21.06. IntangiblePropertyGenerally. [Repealed].
21.07. IntangiblesofCertainTransportationBusinesses. 21.25. Exemption[Repealed].
Sec. 21.01. Real Property.
Real property is taxablebya taxing unitiflocated in the unitonJanuary 1, exceptasprovided byChapter 41, EducationCode.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1993,73rdLeg.,ch.347 (S.B.7),§ 4.10,effectiveMay 31,1993;am.Acts1997,75thLeg., ch.165 (S.B.898),§ 6.74,effectiveSeptember1, 1997.)
Sec. 21.02. Tangible Personal Property Generally.
(a) ExceptasprovidedbySubsections(b)and(e)andbySections21.021,21.04,and21.05,tangiblepersonalproperty istaxablebyataxingunitif:
(2) itnormallyislocatedintheunit,eventhoughitisoutsidetheunitonJanuary1,ifitisoutsidetheunitonly temporarily;
(3) itnormallyisreturnedtotheunitbetweenuseselsewhereandisnotlocatedinanyoneplaceformorethana temporaryperiod;or
(4) theowner resides(forproperty notusedfor businesspurposes)ormaintains the owner’sprincipal placeof businessinthisstate(forpropertyusedforbusinesspurposes)intheunitandthepropertyistaxableinthisstate butdoesnothaveataxablesituspursuanttoSubdivisions(1)through(3)ofthissubsection.
(b) Tangiblepersonal property havingtaxablesitus atthesame locationasreal propertydetachedfrom aschool districtandannexedbyanotherschooldistrictunderChapter41,EducationCode,istaxableinthetaxyearinwhich thedetachmentandannexationoccursbythesameschooldistrictbywhichtherealpropertyistaxableinthattaxyear underChapter41,EducationCode.ForpurposesofthissubsectionandChapter41,EducationCode,tangiblepersonal propertyhastaxablesitusatthesamelocationasrealpropertydetachedandannexedunderChapter41,Education Code,ifthedetachmentandannexationoftherealproperty,haditoccurredbeforeJanuary1ofthetaxyear,would havechangedthetaxablesitusofthetangiblepersonalpropertydeterminedasprovidedbySubsection(a)fromthe schooldistrictfromwhichtherealpropertywasdetachedtotheschooldistricttowhichtherealpropertywasannexed. (c) TangiblepersonalpropertyhastaxablesitusinaschooldistrictthatistheresultofaconsolidationunderChapter 41,EducationCode,intheyearinwhichtheconsolidationoccursifthepropertywouldhavehadtaxablesitusinthe consolidateddistrictinthatyearhadtheconsolidationoccurredbeforeJanuary1ofthatyear.
(d) AmotorvehicledoesnothavetaxablesitusinataxingunitunderSubsection(a)(1)if,onJanuary1,thevehicle: (1) hasbeenlocatedforlessthan60daysataplaceofbusinessofapersonwhoholdsawholesalemotorvehicle auction general distinguishing number issued by the Texas Department of Motor Vehicles under Chapter 503, TransportationCode,forthatplaceofbusiness;and
(2) isofferedforresale.
(e) Inthissubsection,‘‘portabledrillingrig’’includesequipmentassociatedwiththedrillingrig.Aportabledrilling rigdesignedforland-basedoilorgasdrillingorexplorationoperationsistaxablebyeachtaxingunitinwhichtherig is located onJanuary 1 ifthe rig was locatedin the appraisaldistrict that appraisesproperty for theunit for the preceding365consecutivedays.IfthedrillingrigwasnotlocatedintheappraisaldistrictwhereitislocatedonJanuary 1forthepreceding365days,itistaxablebyeachtaxingunitinwhichtheowner’sprincipalplaceofbusinessinthis stateislocatedonJanuary1,unlesstheownerrenderstherigunderChapter22totheappraisaldistrictinwhichthe rigislocatedonJanuary1,inwhicheventtherigistaxablebyeachtaxingunitinwhichtherigislocatedonJanuary 1.IfanownerelectstorenderanyportabledrillingrigtotheappraisaldistrictinwhichtherigislocatedonJanuary 1 whenthe rig otherwisewould be taxable atthe owner’s principalplace of businessin this state,allthe owner’s portabledrillingrigsaretaxablebythetaxingunitsinwhicheachrigislocatedonJanuary1.Notwithstandingany otherprovisionofthissubsection,iftheownerofaportabledrillingrigdoesnothaveaplaceofbusinessinthisstate, therigistaxablebyeachtaxingunitinwhichtherigislocatedonJanuary1.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1983,68thLeg.,ch.353 (H.B.1748),§ 2,effectiveJanuary1,1984;am.Acts1989,71stLeg.,ch.534(H.B.2959),§ 5,effectiveAugust28,1989; am.Acts1993,73rdLeg.,ch.347(S.B.7),§ 4.11,effectiveMay31,1993;am.Acts1997,75thLeg.,ch.165(S.B.898), § 6.75,effectiveSeptember1,1997;am.Acts2005,79thLeg.,ch.412(S.B.1652),§ 8,effectiveSeptember1,2005;am. Acts2006,79thLeg.,3rdC.S.,ch.1(H.B.3),§ 1(a),effectiveJanuary1,2007;am.Acts2007,80thLeg.,ch.911(H.B. 2982),§ 1,effectiveJanuary1,2008;am.Acts2009,81stLeg., ch.933 (H.B.3097),§ 3K.01,effectiveSeptember1, 2009.)
Sec. 21.021. Vessels and Other Watercraft.
(a) Avesselorotherwatercraftusedasaninstrumentalityofcommerce(asdefinedinSection21.031(b)ofthiscode) istaxablepursuanttoSection21.02ofthiscode.
(b) Aspecial-purposevesselorotherwatercraftnotusedasaninstrumentalityofcommerce(asdefinedinSection 21.031(b)ofthiscode)isdeemedtobelocatedonJanuary1formorethanatemporaryperiodforpurposesofSection 21.02ofthiscodeinthetaxingunitinwhichitwasphysicallylocatedduringtheyearprecedingthetaxyear.Ifthe vesselorwatercraftwasphysicallylocatedinmorethanonetaxingunitduringtheyearprecedingthetaxyear,itis deemedtobelocatedformorethanatemporaryperiodforpurposesofSection21.02ofthiscodeinthetaxingunitin whichitwasphysicallylocatedforthelongestperiodduringtheyearprecedingthetaxyearorfor30days,whichever islonger.IfavesselorotherwatercraftisnotdeemedtobelocatedinanytaxingunitonJanuary1formorethana temporaryperiodpursuanttothissubsection,theproperty istaxableasprovidedbySubdivisions (2)through(4)of Section21.02ofthiscode.
(c) Thissectionappliessolelytoadeterminationoftaxablesitusanddoesnotapplytoadeterminationofjurisdiction totaxunderSection11.01ofthiscode.
(EnactedbyActs1983,68thLeg.,ch.353(H.B.1748),§ 3,effectiveJanuary1,1984.)
Sec. 21.03. Interstate Allocation.
(a) Ifpersonalpropertythatistaxablebyataxingunitisusedcontinuallyoutsidethisstate,whetherregularlyor irregularly,theappraisalofficeshallallocatetothisstatetheportionofthetotalmarketvalueofthepropertythatfairly reflectsitsuseinthisstate.
(b) Thecomptrollershalladoptrules:
(1) identifyingthekindsofpropertysubjecttothissection;and
(2) establishingformulasforcalculatingtheproportionoftotalmarketvaluetobeallocatedtothisstate. (EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1991,72ndLeg.,2ndC.S., ch.6(S.B.45),§ 14,effectiveSeptember1,1991.)
Sec. 21.031. Allocation of Taxable Value of Vessels and Other Watercraft Used Outside This State.
(a) Ifa vessel orotherwatercraftthatis taxablebya taxingunit isusedcontinually outsidethisstate,whether regularlyorirregularly,theappraisalofficeshallallocatetothisstatetheportionofthetotalmarketvalueofthevessel orwatercraftthatfairlyreflectsitsuseinthisstate.Theappraisalofficeshallnotallocatetothisstatetheportionof thetotalmarketvalueofthevesselorwatercraftthatfairlyreflectsitsuseinanotherstateorcountry,ininternational waters,orbeyondtheGulfwardboundaryofthisstate.
(b) Theappraisalofficeshallmaketheallocationasfollows:
(1) Theallocableportionofthetotalfairmarketvalueofavesselorotherwatercraftusedasaninstrumentality ofcommercethatistaxableinthisstateisdeterminedbymultiplyingthetotalfairmarketvaluebyafraction,the numerator of which is the numberof miles the vessel orwatercraft was operated in this state during the year preceding the tax year and the denominator of which is the totalnumber of miles the vessel orwatercraft was operatedduringtheyearprecedingthetaxyear.Forpurposesofthissection,‘‘vesselorotherwatercraftusedasan instrumentalityofcommerce’’meansavesselorotherwatercraftthatisprimarilyemployedinthetransportationof cargo,passengers,orequipment,andthatiseconomicallyemployedwhenitismovingfrompointtopointasameans oftransportation.
(2) Theallocableportionofthetotalfairmarketvalueofaspecial-purposevesselorotherwatercraftnotusedas aninstrumentalityofcommerceisdeterminedbymultiplyingthetotalfairmarketvaluebyafraction,thenumerator ofwhichisthenumberofdaysthevesselorwatercraftwasphysicallylocatedinthisstateduringtheyearpreceding the tax year and the denominator of which is 365. For purposesof this section,‘‘special-purpose vessel or other watercraftnotusedasaninstrumentalityofcommerce’’meansavesselorotherwatercraftthat:
(A) isdesignedtobetransientandcustomarilyismovedfromlocationtolocationonamoreorlessregularbasis; (B) iseconomicallyemployedwhenoperatedinalocalizedareaorinafixedplace;and
(C) is not primarily employed to transport cargo, passengers, and equipment but rather to perform some specializedfunctionoroperationnotrequiringconstantmovementfrompointtopoint.
(c) A vessel or other watercraft used as an instrumentality of commerce or a special-purpose vessel or other watercraftnotusedasaninstrumentalityofcommercethatisusedoutsidethisstateandisinthisstatesolelytobe converted,repaired,stored, orinspectedispresumed tobe ininterstate,international,orforeigncommerceandnot locatedinthisstateforlongerthanatemporaryperiodforpurposesofSections11.01and21.02.
(d) Iftheallocationprovisionsofthissectiondonotfairlyreflecttheuseofavesselorotherwatercraftinthisstate, analternateallocationformulashallbeutilizedifthepropertyownerorappraisalofficedemonstratesthat:
(1) the allocation formula specified in this section is arbitrary and unreasonable as applied to the vessel or watercraft;and
(2) theformulaorindicationofuseproposedbythepropertyownerorappraisalofficemorefairlyreflectsthevessel orwatercraft’suseinthisstatethanthatspecifiedinthissection.
(e) Toreceiveanallocationofvalueunderthissection,apropertyownermustapplyfortheallocationonaformthat substantially complies with the form prescribed by the comptroller. The application must be filed with the chief appraiserforthedistrictinwhichthepropertytowhichtheapplicationappliesistaxablebeforetheapprovalofthe appraisalrecordsbytheappraisalreviewboardasprovidedbySection41.12ofthiscode.
(f) Thecomptrollershallpromulgateformsandmayadoptrulesconsistentwiththeprovisionsofthissection. (g) Avesselorotherwatercrafttobeusedasaninstrumentalityofcommerceoraspecial-purposevessel orother watercraftnottobeusedasaninstrumentalityofcommercethatisunderconstructioninthisstateispresumedtobe in interstate,international,orforeigncommerceandnotlocatedinthisstateforlongerthanatemporaryperiodfor purposesofSections11.01and21.02.
(h) Tangiblepersonalpropertyinthisstateispresumedtobeininterstate,international,orforeigncommerceand not located in this state for longerthan a temporaryperiod for purposes of Sections11.01 and 21.02if the owner demonstratestothechiefappraiserthattheownerintendstoincorporatethepropertyinorattachthepropertytoan identifiedvesselorotherwatercraftdescribedbySubsection(c)or(g).
(EnactedbyActs1983,68thLeg.,ch.353(H.B.1748),§ 3,effectiveJanuary1,1984;am.Acts1991,72ndLeg.,2ndC.S., ch.6(S.B.45),§ 15,effectiveSeptember1,1991;am.Acts2001,77thLeg.,ch.117(H.B.1100),§ 1,effectiveJanuary 1,2002.)
Sec. 21.04. Railroad Rolling Stock.
(a) Aportionof thetotalmarket valueofrailroadrolling stockthatis appraisedasprovided bySubchapterBof Chapter24ofthiscodeistaxablebyeachcountyinwhichtherailroadoperates.
(b) TheportionofthetotalmarketvaluethatistaxablebyacountyisdeterminedbytheprovisionsofSubchapter BofChapter24ofthiscode.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1983,68thLeg.,ch.851 (H.B.1203),§ 9,effectiveAugust29,1983.)
Sec. 21.05. Commercial Aircraft.
(a) Ifa commercial aircraftthat istaxable byataxingunit isused bothinthis stateand outsidethisstate,the appraisalofficeshallallocatetothisstatetheportionofthefairmarketvalueoftheaircraftthatfairlyreflectsitsuse inthisstate.Theappraisalofficeshallnotallocatetothisstatetheportionofthetotalmarketvalueoftheaircraftthat fairlyreflectsitsusebeyondtheboundariesofthisstate.
(b) The allocable portion of the total fair market value of a commercial aircraft that is taxable in this state is presumedtobethefairmarketvalueoftheaircraftmultipliedbyafraction,thenumeratorofwhichistheproductof 1.5andthenumberofrevenuedeparturesbytheaircraftfromTexasduringtheyearprecedingthetaxyear,andthe denominatorofwhichisthegreaterof(1)8,760,or(2)thenumerator.
(c) Duringthetimeinwhichanycommercialaircraftisremovedfromairtransportationserviceforrepair,storage, orinspection,suchaircraftispresumedtobeininterstate,international,orforeigncommerceandnotlocatedinthis stateforlongerthanatemporaryperiodforpurposesofSection11.01ofthiscode.
(d) Acertificatedaircarrier shall designatethe taxsitus ofcommercial aircraftthat landin Texas aseitherthe carrier’s principal office in Texas or that Texas airport from which the carrier has the highest number of Texas departures.
(e) Forpurposesofthissubchapter,acommercialaircraftshallmeananinstrumentalityofaircommercethatis: (1) primarilyengagedinthetransportationofcargo,passengers,orequipmentforothersforconsideration; (2) economicallyemployedwhenitismovingfrompointtopointasameansoftransportation;and
(3) operated by a certificated air carrier. A certificated air carrier is one engaged in interstate or intrastate commerceunderauthorityoftheU.S.DepartmentofTransportation.
(EnactedbyActs1989,71stLeg.,ch.534(H.B.2959),§ 6,effectiveAugust28,1989.)
Sec. 21.055. Business Aircraft.
(a) Ifanaircraftisusedfor abusinesspurposeof theowner,istaxablebya taxingunit,and isusedcontinually outsidethisstate,whetherregularlyorirregularly,theappraisalofficeshallallocatetothisstatetheportionofthefair marketvalueoftheaircraftthatfairlyreflectsitsuseinthisstate.Theappraisalofficeshallnotallocatetothisstate theportionofthetotalmarketvalueoftheaircraftthatfairlyreflectsitsusebeyondtheboundariesofthisstate.
(b) TheallocableportionofthetotalfairmarketvalueofanaircraftdescribedbySubsection(a)ispresumedtobe thefairmarketvalueoftheaircraftmultipliedbyafraction,thenumeratorofwhichisthenumberofdeparturesby theaircraftfromalocationinthisstateduringtheyearprecedingthetaxyearandthedenominatorofwhichisthetotal numberofdeparturesbytheaircraftfromalllocationsduringtheyearprecedingthetaxyear.
(c) ThissectiondoesnotapplytoacommercialaircraftasdefinedbySection21.05.
(EnactedbyActs1999,76thLeg.,ch.970(H.B.2574),§ 1,effectiveJune18,1999;EnactedbyActs1999,76thLeg.,ch. 1481(H.B.3549),§ 7,effectiveSeptember1,1999.)
Sec. 21.06. Intangible Property Generally.
(a) ExceptasprovidedbySections21.07through21.09ofthiscode,intangiblepropertyistaxablebyataxingunit ifthe owneroftheproperty residesintheunitonJanuary1, unlessthepropertynormallyis usedinthisstatefor businesspurposesoutsidetheunit.Inthatevent,theintangiblepropertyistaxablebyeachtaxingunitinwhichthe propertynormallyisusedforbusinesspurposes.
(b) Depositingintangiblepropertywithanagencyofthestatepursuanttoalawrequiringorauthorizingthedeposit isnotusingitforabusinesspurposeatthedepository.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982.)
Sec. 21.07. Intangibles of Certain Transportation Businesses.
(a) Aportionofthetotalintangiblevalueofatransportationbusinesswhoseintangiblesareappraisedasprovided bySubchapterAofChapter24ofthiscodeistaxablebyeachcountyinwhichthebusinessoperates.
(b) TheportionofthetotalvaluethatistaxableasprovidedbySubsection(a)ofthissectionisdeterminedbythe provisionsofSubchapterAofChapter24ofthiscode.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1983,68thLeg.,ch.851 (H.B.1203),§ 10,effectiveAugust29,1983.)
Sec. 21.08. Intangibles of Certain Financial Institutions.
(a) Thetaxablesitusofintangiblepropertyownedbyaninsurancecompanyincorporatedunderthelawsofthisstate isdeterminedasprovidedbyArticle4.01,InsuranceCode.
(b) Thetaxablesitusofintangiblepropertyownedbyasavingsandloanassociationis determinedasprovidedby Section89.003,FinanceCode.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1982;am.Acts1999,76thLeg.,ch.62(S.B. 1368),§ 7.89,effectiveSeptember1,1999.)
Sec. 21.09. Allocation Application.
(a) ToreceiveanallocationauthorizedbySection21.03, 21.031,21.05, or21.055,apersonclaimingtheallocation mustapplyfortheallocation.Toapplyforanallocation,apersonmustfileanallocationapplicationformwiththechief appraiserintheappraisaldistrictinwhichthepropertysubjecttotheclaimedallocationhastaxablesitus.
(b) Apersonclaiminganallocationmustapplyfortheallocationeachyearthepersonclaimstheallocation.Aperson claiminganallocationmustfileacompletedallocationapplicationformbeforeMay1andmustprovidetheinformation requiredbytheform.Iftheproperty wasnotonthe appraisalroll intheprecedingyear,the deadlineforfilingthe allocationapplicationformisextendedtothe45thdayafterthedateofreceiptofthenoticeofappraisedvaluerequired bySection 25.19(a)(3). Forgood causeshown, the chiefappraisershall extend the deadline for filingan allocation applicationformbywrittenorderforaperiodnottoexceed60days.
(c) Thecomptrollershallprescribe thecontentsoftheallocationapplication formand shallensure thattheform requiresanapplicanttoprovidetheinformationnecessarytodeterminethevalidityoftheallocationclaim.
(d) Ifthechiefappraiserlearnsofanyreasonindicatingthatanallocationpreviouslyallowedshouldbecanceled,the chiefappraisershallinvestigate.Ifthechiefappraiserdeterminesthatthepropertyisnotentitledtoanallocation,the chiefappraisershallcanceltheallocationanddeliverwrittennoticeofthecancellationnotlaterthanthefifthdayafter thedatethechiefappraisermakesthecancellation.Apersonmayprotestthecancellationofanallocation.
(e) ThefilingofarenditionunderChapter22isnotaconditionofqualificationforanallocation. (EnactedbyActs2013,83rdLeg.,ch.1259(H.B.585),§ 10,effectiveJune14,2013.)
Sec. 21.10. Late Application for Allocation.
(a) ThechiefappraisershallacceptandapproveordenyanapplicationforanallocationunderSection21.09after thedeadlineforfilingtheapplicationhaspassediftheapplicationisfiledbeforethedatetheappraisalreviewboard approvestheappraisalrecords.
(b) Iftheapplicationisapproved,thepropertyownerisliabletoeachtaxingunitforapenaltyinanamountequal